My sister-in-law has a 1981 240d with approx. 117,000 miles on it. The car has been in the family since new. However, it appears that the lower-end of the engine is shot. Sister-in-law doesn't want to put any more money into it and will give it to me for free or if I don't want it, she is going to donate to her favorite charity. I have a 1983 300cd and have been considering a four door sedan, likely a 300sd, for the family.

Here is my dilema. The 240d is in great cosmic condition but I suspect my sister-in-law drove it hard as she has little to no knowledge of automobiles. A new engine would likely run in the $4000 to $5000 range. It is an automatic and I am not sure that I will be happy with its performance.

Conversely, I expect that I can pick up a nice 300sd for about the same price.

What do you recommend? What would you do with the 240d?